Kevin Alexander, Tax Evasion, Iowa 2022

A Sergeant Bluff businessman has been caught in a web of deceit, evading payment of his company’s employment taxes. Kevin Alexander, 62, of Sioux City, pleaded guilty to tax evasion on November 16, 2022.

According to court documents and statements made in court, Alexander owned K&L Construction, Inc., a landscaping and construction company in Sergeant Bluff, Iowa. As the sole shareholder and president of K&L Construction, Alexander was responsible for filing quarterly employment tax returns and collecting and paying over to the IRS payroll taxes withheld from employees’ wages.

Between the second quarter of 2014 and the first quarter of 2017, K&L Construction paid approximately $3.8 million in wages to its employees and withheld approximately $1 million in payroll taxes. However, the company did not pay over any of these withholdings to the IRS.

During IRS collection proceedings, Alexander accepted responsibility for paying K&L Construction’s outstanding tax balance. Despite this, he submitted a false form to the IRS that concealed some of his assets. As part of his plea agreement, Alexander admitted that he submitted the false form for the purpose of concealing assets and evading payment of K&L Construction’s outstanding payroll tax liability.

Alexander will be sentenced at a later date before United States District Court Chief Judge Leonard T. Strand. He remains in the custody of the United States Marshal pending sentencing and faces a maximum sentence of 5 years in prison.

Alexander also faces a period of supervised release, restitution, and monetary penalties. The exact amount of restitution and penalties will be determined by Judge Strand after considering the U.S. Sentencing Guidelines and other statutory factors.

The case is being investigated by the IRS-Criminal Investigation and prosecuted by Assistant U.S. Attorney Ron Timmons of the U.S. Attorney’s Office for the Northern District of Iowa and Trial Attorney Meredith Havekost of the Justice Department’s Tax Division.